**Toro Company Reports Fiscal Year 2025 Results**
The Toro Company (TTC) has released its 10-K filing, detailing its financial performance for the fiscal year 2025. The company reported consolidated net sales of $4.51 billion, a decrease of 1.6% compared to the $4.58 billion reported in fiscal year 2024. Net earnings for fiscal 2025 were $316.1 million, or $3.17 per diluted share, a decrease from the $418.9 million, or $4.01 per diluted share, reported in the previous fiscal year. The company's gross margin was 33.4%, a decrease of 40 basis points compared to the 33.8% reported in fiscal 2024.
The company's Professional segment experienced a 1.9% increase in net sales, reaching $3.62 billion, compared to $3.56 billion in fiscal 2024. This growth was attributed to higher shipments of golf, grounds, and underground construction products, as well as net price realization, partially offset by prior year divestitures and lower shipments of specialty construction products. However, the Residential segment saw a 14.0% decrease in net sales, falling to $858.4 million from $998.3 million in the previous year, primarily driven by lower shipments broadly across the segment, as well as the prior year Pope divestiture. International net sales also decreased by 4.8%, amounting to $878.3 million compared to $923.0 million in fiscal 2024.
Strategic developments for Toro included the acquisition of Tornado Infrastructure Equipment Ltd. on December 8, 2025, for $279.3 million Canadian dollars. This acquisition is expected to broaden and strengthen the company's Professional segment and expand its dealer network. The company funded the acquisition with borrowings under its existing revolving credit facility and additional financial arrangements. During the third quarter of fiscal 2025, the company recorded a non-cash impairment charge of $81.1 million related to the indefinite-lived Spartan trade name intangible asset.
Key operational developments included a decrease in field inventory levels compared to the previous year, primarily due to decreased balances of golf and grounds and turf products, partially offset by higher balances of underground construction products. The company's order backlog decreased by $0.4 billion to $0.8 billion as of October 31, 2025, from $1.2 billion as of October 31, 2024, primarily driven by improved manufacturing output and more normalized order patterns. The company also continued its commitment to returning value to shareholders, increasing its fiscal 2025 quarterly cash dividend by 5.6% to $0.38 per share and repurchasing shares of its common stock. As of October 31, 2025, the company had available liquidity of $1.24 billion, consisting of cash and cash equivalents of $341.0 million and availability under its revolving credit facility of $897.9 million.
Looking ahead, Toro anticipates continued growth in key markets and is focused on executing its strategic priorities, including driving productivity and operational excellence through its Amplifying Maximum Productivity (AMP) initiative. The company expects backlog to normalize by mid-fiscal 2026 given its improved manufacturing output and lower lead times. The company also plans to continue its commitment to disciplined portfolio management and prudent capital allocation strategies.
About TORO CO
The Toro Company designs, manufactures, and markets professional and residential outdoor equipment, including turf maintenance, landscaping, irrigation, snow removal, and construction products. Serving global markets, it offers innovative, high-quality solutions through a broad brand portfolio and extensive distribution channels. Focused on sustainability, safety, and customer service, the company leverages technology, strategic acquisitions, and manufacturing efficiency to maintain industry leadership.
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A 10-K form is a comprehensive annual report that public companies in the United States must file with the SEC, providing a detailed overview of the company's financial condition, performance, and business strategies.
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- Importance: Considered the most comprehensive and important document a public company files with the SEC.
- Length: Often exceeds 100 pages due to its extensive and detailed nature.
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